Debit Card

AAA

DEFINITION of 'Debit Card'

An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client's account to the business account.

INVESTOPEDIA EXPLAINS 'Debit Card'

The major benefits to this type of card are convenience and security. Along with the convenience of accessing account funds at anytime it also removes the hassles associated with having to write checks as payment like showing ID and associated fees. Debit cards are also considered to be a safer form of payment as a code is required to access the account funds, while checks can be easily stolen.

RELATED TERMS
  1. Private-Label Credit

    A type of revolving-credit plan managed by a bank or commercial ...
  2. Personal Identification Number ...

    A numerical code used in many electronic financial transactions. ...
  3. Payroll Card

    A type of bank debit card. Payroll cards draw on the user's wages ...
  4. Credit Criteria

    The various financial characteristics that lenders analyze when ...
  5. Bank Card

    Any card issued against a depositary account, such as an ATM ...
  6. Checking Account

    A transactional deposit account held at a financial institution ...
Related Articles
  1. Credit, Debit And Charge: Sizing Up ...
    Credit & Loans

    Credit, Debit And Charge: Sizing Up ...

  2. Debit Card Fraud: Is Your Money At Risk?
    Credit & Loans

    Debit Card Fraud: Is Your Money At Risk?

  3. Should You Pay In Cash?
    Budgeting

    Should You Pay In Cash?

  4. Your First Checking Account
    Insurance

    Your First Checking Account

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center